A Way to Understand Housing Markets Beyond “Subsidy, Gap and Market”
This is a publication from the Urban Real Estate Research Unit, University of Cape Town.
‘Conducting a comprehensive and nuanced submarket analysis (avoiding oversimplified ‘market segments’ such as Subsidy, Gap and Market) is important to firstly, identify and track the drivers of demand, and better understand housing market dynamics, for example the filtering of housing stock from higher income to lower income households over time, and households climbing the ‘property ladder’. Secondly, to more accurately estimate the quantity and nature of housing units that will be demanded in the future, by projecting household growth and housing choices per submarket. Thirdly, to identify shortages or surpluses in specific submarkets, enabling more appropriate and effective intervention.’Download PDF